TriNet Group (NYSE:TNET) and Conduent (NASDAQ:CNDT) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Earnings & Valuation
This table compares TriNet Group and Conduent's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
TriNet Group | $3.86 billion | 1.42 | $212 million | $2.90 | 28.54 |
Conduent | $4.47 billion | 0.33 | $-1,934,000,000.00 | $0.62 | 11.32 |
TriNet Group has higher earnings, but lower revenue than Conduent. Conduent is trading at a lower price-to-earnings ratio than TriNet Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for TriNet Group and Conduent, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
TriNet Group | 0 | 2 | 2 | 0 | 2.50 |
Conduent | 0 | 1 | 1 | 0 | 2.50 |
TriNet Group presently has a consensus price target of $80.3333, indicating a potential downside of 3.11%. Conduent has a consensus price target of $6.00, indicating a potential downside of 14.77%. Given TriNet Group's higher probable upside, research analysts clearly believe TriNet Group is more favorable than Conduent.
Institutional & Insider Ownership
91.5% of TriNet Group shares are held by institutional investors. Comparatively, 72.9% of Conduent shares are held by institutional investors. 39.7% of TriNet Group shares are held by insiders. Comparatively, 0.3% of Conduent shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares TriNet Group and Conduent's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
TriNet Group | 7.47% | 53.04% | 10.65% |
Conduent | -16.35% | 11.40% | 3.16% |
Risk & Volatility
TriNet Group has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Conduent has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
Summary
TriNet Group beats Conduent on 11 of the 13 factors compared between the two stocks.